Private real estate equity firm Trion Properties, based in West Hollywood, California, and Miami, has launched its third multifamily fund. Trion Multifamily Opportunity Funds III will target $75 million in equity to deliver $175 million to $200 million in buying power in the West and the Southeast.
The fund will primarily invest in the acquisition, improvement, and repositioning of undervalued and opportunistic multifamily assets, anticipating the acquisition of eight to 12 properties over its investment period.
The third fund comes on the heels of the close of its second multifamily fund, which has over $28 million with a pool of 215 diverse investors, in March.
“With our first two funds, we executed an investment strategy that proved quite resilient, which allowed us to take advantage of several significant opportunities during both incredibly strong and uncertain economic times,” said Max Sharkansky, managing partner at Trion. “We are able to leverage our long-standing industry relationships to acquire these opportunities primarily through off-market transactions. This enabled us to build a strong portfolio of communities, acquired for highly competitive prices, which were positioned to provide strong returns to our investors.”
To date, the firm, founded in 2005, has acquired 64 properties and completed more than $1 billion in transactions.
“Trion’s sole focus on our proven strategy of acquiring and repositioning undervalued multifamily assets in key markets, combined with our vertically integrated property management platform, has led to demonstratable success,” added Mitch Paskover, managing partner at Trion. “The average investor annualized return on our properties exceeds 30% annually, and all properties purchased with Funds I and II have either met or exceeded projections or are on pace to do so.”
According to Trion, the third fund is targeting invest0r-level annualized returns of 13% to 15% over a six- to eight-year period.
The firm has established a foothold in several Western markets, with a portfolio of more than 1,250 units across Los Angeles, San Diego, the San Francisco Bay Area, and the greater Portland, Oregon, area. It plans to continue to focus on these markets as well as others demonstrating strong growth fundamentals, including the Southeast region, where it opened an office in Miami earlier this year, as well as Salt Lake City and Seattle.
